GBP/JPY losing the grip near 140.20 ahead of UK CPI

GBP/JPY is posting moderate losses on Tuesday, as markets remain slightly tilted towards the risk-off sentiment ahead of the opening bell in Europe.

GBP/JPY focus on UK’s inflation figures

The cross is deflating from Monday’s tops above the 141.00 handle in response to a renewed demand for the safe haven Yen, with the Sterling also under pressure ahead of the release of June’s inflation figures in the UK economy. Recall that market expectations point to the CPI rising 0.2% on a monthly basis.

In the meantime, the cross is extending its consolidative theme around current levels amidst absent fresh development from the ‘Brexit’ vote and with RO/RO trends as the exclusive drivers of the price action.

GBP/JPY key levels

As the moment the cross is down 0.36% at 140.19 and a break below 137.152 (20-day sma) would expose 136.19 (50% Fibo of post-Brexit down move) and then 128.77 (2016 low Jul.6). On the other hand, the initial hurdle lines up at 143.25 (high Jul.15) followed by 144.50 (50% Fibo of post-Brexit down move) and finally 149.45 (55-day sma).